3. Airline Rates and Charges by Resolution
Legal Basis for New Rate Regime
• The rate methodology is designed to recover from
the air carriers using MCO their fairly allocated
share of costs in accordance with the U.S.
Department of Transportation’s Policy Regarding
Airport Rates and Charges, 61 Fed. Reg. 31994
(Jun. 21, 1996), as amended, and other
applicable law
3
Wednesday, October 2, 2013
4. Airline Rates and Charges by Resolution
Supporting Documents
• Replace the existing Airline-Airport Lease and Use
Agreement that expired
• New Documents
1. Rate Resolution-sets terms and conditions for operating at
MCO
2. Rate Book-contains specific rates and formulas
3. Operating Permit-allows an airline to operate on a monthly
basis
4. Letter of Authorization (LOA)-allows an airline to commit to
occupy and use facilities longer than a monthly basis
5. Airline Operations Procedures-contains detailed operating
rules
6. Rate and Revenue Sharing Agreement-provides for revenue
sharing
3
Wednesday, October 2, 2013
5. Airline Rates and Charges by Resolution
Changes from Existing Ratemaking
• Same rates for all airlines – no premium rates
• Fees per passenger for the use of Inbound and
Outbound Baggage Systems
• Federal Inspection Services costs from Terminal
rental rate
• Common use equipment fees are included in
Terminal rental rates
3
Wednesday, October 2, 2013
6. Airline Rates and Charges by Resolution
Changes from Existing Ratemaking
• Eliminate airline Majority-In-Interest (MII)
• No Extraordinary Coverage Protection
• GOAA will share net revenues with those
passenger airlines that agree not to contest rates
and commit to Terminal space through September
30, 2016
3
Wednesday, October 2, 2013
7. Transition Period
• October 1, 2013 - Airlines in a “holdover status” under
expired lease
• November 1, 2013 - new rates become effective
• December 31, 2013 - final opportunity to execute Rate
and Revenue Sharing Agreement for airlines currently
operating at MCO
• February 28, 2014 - reconciliation of payments and
rates during transition period (October-December 2013)
3
Wednesday, October 2, 2013
10. AGENDA
• BACKGROUND
Strategic Goals
Airport Master Plan Update
Challenges
Passenger Activity
Capacity Methodology
Enhanced Terminal Capacity
• NTC Capacity Enhancement Program
Ticket Lobby Level 3 Expansion
Baggage Handling Systems
International Capacity / Airside 4 Improvements
South Airport APM Complex
• STC Future Demand Driven Growth
STC Critical Design Impact Issues
STC Master Plan Evolution
• STC Near Term Program
• STC Long Term Program
10/02/2013
10
11. STRATEGIC GOALS
To be successful the Airport Master Plan must focus on the
Greater Orlando Aviation Authority’s strategic goals:
• Exceed the Expectations of the Traveling Public, with the
collaboration of our Airport Partners and the Community
• Foster Economic Development for the Region
• Operate and Maintain Safe and Secure World-Class Facilities
• Act in a Fiscally Responsible Manner
10/02/2013
11
12. AIRPORT MASTER PLAN UPDATE
20 YEAR PLANNING HORIZON
AVIATION FORECAST
• Passenger Forecast
• Aircraft Forecasting
DEMAND CAPACITY ANALYSIS &
FACILITY REQUIREMENTS
• Projected Capacity Impact on Airport
Facilities
• Alternatives Development
• Capital Improvement Program (CIP)
AIRPORT LAYOUT PLAN
• Overall Site Plan with Existing and
Proposed Future Facilities
10/02/2013
12
13. CHALLENGES
NORTH TERMINAL COMPLEX:
• Reaching critical stress points
• Approaching domestic capacity limits
• International traffic growth limited by current facility constraints
10/02/2013
13
15. CAPACITY METHODOLOGY
LEVELS OF SERVICE
Levels of Service for OIA were established considering Federal and Industry
Guidelines, qualified with The Orlando Experience® standard.
OPERATIONAL SYSTEMS
1. International Gates & FIS
2. Terminal Ramps
3. Passenger Security Checkpoints
4. Parking
5. Ticketing
6. Terminal Curbs
7. Baggage Handling Systems (BHS)
8. On-Airport Rent-a-Car (RAC)
9. Baggage Claim
10. Domestic Gates
11. Entering and Exiting Road Weaves
12. Terminal Roads
13. Airfield
14. Automated People Mover (APM)
LEVEL OF SERVICE (LOS)
MEASURE FACTOR
LEVEL OF SERVICE
EXCEEDS EXPECTATION
MEETS EXPECTATION
BELOW EXPECTATION
Arrival/Departure Delay Time (Minutes)
Traffic Flow (LOS A-F)
Processing Time (Minutes)
Space Availability (Occupancy)
Queue and Transaction Time (Minutes)
Congestion (LOS A-F)
Bags Processed in 20 Minutes
Transaction Time (Minutes)
Wait Time (Minutes
Arrival/Departure Delay Time (Minutes)
Traffic Flow (LOS A-F)
Traffic Flow (LOS A-F)
Arrival/Departure Delay Time (Minutes)
Wait Time (Minutes)
HIGH
CUSTOMER
SATISFACTION
10/02/2013
LOW
CUSTOMER
SATISFACTION
15
16. ENHANCED TERMINAL CAPACITY
Enhance 4 critical Operational Systems to achieve 45 Million
Annual Passengers (MAP) and the finite capacity of the North
Terminal Complex (NTC)
1.
2.
3.
4.
Landside Terminal Ticket Lobby Expansion and Refurbishment
Baggage Handling System (BHS) Upgrade and Improvements
Airside 4 CBP and International Gate Expansion
South Airport Automated People Mover (APM) Complex
A. Garage Parking Expansion
B. Ground Transportation Capacity Expansion
C. Roads, Ramps and Curbs Capacity
These Projects provide transitional period for incremental
phasing of the Intermodal Complex and Phase I of the South
Terminal Complex (STC)
10/02/2013
16
18. TICKET LOBBY LEVEL 3 EXPANSION
• Expand Ticket Hall for
Alternate Check-In
• Expand Infrastructure for
Future Technology
Advancements
• Improve Oversize Baggage
Check-In
• Interior Refurbishment for
The Orlando Experience®
10/02/2013
18
19. BAGGAGE HANDLING SYSTEMS
• Complete upgrades &
conversion to an “In-Line”
Baggage Screening System
• Integrated Security
Technology to meet latest
TSA Mandates
• 45 MAP Capacity with support
from Remote Screening
Facility (RSF)
10/02/2013
19
20. INTERNATIONAL CAPACITY IMPROVEMENTS
80’s WING
AIRSIDE 4
• 4 Additional International
Gates at (90’s wing) with
Sterile Corridor
CBP / FIS
90’s WING
• 10,000 s.f. increase of
CBP/FIS Primary Processing
• 15% Increase of 2 Bag Claim
Units
70’s
WING
TSA
PASSENGER
SCREENING
PASSENGER
EXITING
• Interior Refurbishment for
The Orlando Experience®
• New Central Energy Plant
10/02/2013
CENTRAL ENERGY PLANT
20
21. SOUTH AIRPORT APM COMPLEX
NTC Capacity Reliever
• Automated People Mover
(APM) System
NORTH TERMINAL
COMPLEX
Mid-Cross field
Taxiway
• 200,000 s.f. Terminal Facility
• 2,400 Car Garage
• Additional Ground
Transportation Facility
• Remote Check-In & Bag Drop
10/02/2013
APM
Garage
Ground
Transportation
SOUTH APM COMPLEX
21
22. SUMMARY
The commencement of the South Terminal Complex (STC) will
be demand driven based on two trigger points:
• 40 Million Annual Passengers (MAP) at the North Terminal Complex
(NTC) initiating a Design and Construction Program for the South
Terminal Complex Phase I
• 2 MAP Arriving International Passengers processed through
Federal Inspection Stations
10/02/2013
22
23. STC FUTURE DEMAND DRIVEN GROWTH
NORTH
TERMINAL
COMPLEX
FUTURE
SOUTH AIRPORT PEOPLE MOVER COMPLEX
&
SOUTH TERMINALCOMPLEX
10/02/2013
23
24. STC CRITICAL DESIGN IMPACT ISSUES
AVIATION
•
•
•
•
•
Increased Flexibility to meet Airline Demand of Mergers and Acquisitions
Airline Industry Impact of the more efficient Operations Model
Emerging Trends in increased International Passenger Traffic
Greater Passenger Support Area in “Post-security” Terminal Locations
Lessons Learned through the NTC Capacity Analysis
MULTI-MODAL
•
•
•
•
Development of a viable Mass Transportation Commuter Rail System
Regional Development of a viable Intercity Passenger Rail System
Strategic Geographical Location as an opportunity for Multi-Modal
Connectivity
Seamless Integration of Multi-Modal Transit in the South Terminal Complex
(STC) Master Plan Concept
FINANCIAL
•
•
•
Progression from a Residual to a Compensatory Model
Airport Transit Oriented Development Opportunities for Non-airline
Revenue
Reconfiguration of Crossfield Taxiways to maximize STC Development
Area
10/02/2013
24
25. STC MASTER PLAN EVOLUTION
2004 STC MASTER PLAN
TERMINAL
C
•
•
•
•
•
TERMINAL
C
TERMINAL
D
40 Million Annual Passenger Capacity
48 International “Swing” Gates
72 Domestic Gates
8,000 Auto Garage Parking Capacity
2 Rail System Capacity
10/02/2013
2010 STC CONCEPTUAL PLAN
•
•
•
•
•
TERMINAL
D
40 Million Annual Passenger Capacity
48 International “Swing” Gates
72 Domestic Gates
8,000 Auto Garage Parking Capacity
4 Rail System Capacity
25
26. STC MASTER PLAN EVOLUTION
2013 STC Conceptual Plan:
• Maximum Gate Flexibility for a
Diverse Aircraft Mix
• 120 International/Domestic “Swing”
Gates
• On Demand Incremental
Expansion
• 20,000 Car Garage Parking
• Seamless Multi-Modal Connectivity
• Non-Aviation Revenue
Opportunities
• Enhance The Orlando Experience®
• Sustainable Design Principles
• 50-60 MAP Capacity
NORTH TERMINAL
COMPLEX
SOUTH TERMINAL
COMPLEX
10/02/2013
26
27. STC MASTER PLAN EVOLUTION
2013 STC CONCEPTUAL PLAN
Airside Terminal
Airside Terminal
Landside
Terminal
C
Landside
Terminal
D
(60 Swing Gates)
(60 Swing Gates)
Intermodal
Terminal
Hotel
(400-500 Rooms)
Parking Garage
(10,000 Cars)
Hotel
(400-500 Rooms)
Parking Garage
(10,000 Cars)
APM
ALL ABOARD FLORIDA
COMMUTER RAIL
LIGHT RAIL
STC TERMINAL APM
10/02/2013
27
29. SOUTH AIRPORT APM COMPLEX
SOUTH APM COMPLEX
• Initial Phase of Development
• 2,400 Car Garage
• Automated People Mover (APM)
Station
• Additional Ground Transportation
• Remote Check-In & Bag Drop
10/02/2013
29
30. SOUTH TERMINAL, APM & INTERMODAL
INTERMODAL TERMINAL
COMPLEX
•
•
•
•
•
•
Second Phase of Development
2,400 Car Garage
APM Station
Passenger Rail Station
Additional Ground Transportation
Remote Check-In & Bag Drop
10/02/2013
30
31. SOUTH TERMINAL, APM & INTERMODAL
INTERMODAL TERMINAL &
SOUTH TERMINAL COMPLEX
•
•
•
•
•
•
•
Third Phase of Development
5,000 Car Garage
APM Station
Intermodal Station
Additional Ground Transportation
Remote Check-In & Bag Drop
16 International & Domestic Gate
Terminal
• Rent-A-Car
10/02/2013
31
33. SOUTH TERMINAL, APM & INTERMODAL
INTERMODAL TERMINAL &
SOUTH TERMINAL COMPLEX
•
•
•
•
•
•
•
Fourth Phase of Development
5,000 Car Garage
APM Station
Intermodal Station
Additional Ground Transportation
Remote Check-In & Bag Drop
32 International & Domestic Gate
Terminal
• Rent-A-Car
• 500 Room Hotel
• Commuter Rail Station
10/02/2013
33
34. SOUTH TERMINAL, APM & INTERMODAL
INTERMODAL TERMINAL &
SOUTH TERMINAL COMPLEX
•
•
•
•
•
•
•
•
•
•
•
Fifth Phase of Development
10,000 Car Garage
APM Station
Intermodal Station
Additional Ground Transportation
Remote Check-In & Bag Drop
60 International & Domestic Gate
Terminal
Rent-A-Car
500 Room Hotel
Commuter Rail Station
Light Rail Station
10/02/2013
34
35. SOUTH TERMINAL, APM & INTERMODAL
INTERMODAL TERMINAL &
SOUTH TERMINAL COMPLEX
• Ultimate Build-Out Development
• 20,000 Car Garage
• Over 1 Million Square Feet of
ATOD Opportunity
• Intermodal Station – 4 Rail
Systems
• 120 International & Domestic
Gate Terminal
• Rent-A-Car
• Secure Sky Rail Gate Connector
• 2 - 500 Room Hotels
10/02/2013
35
36. SOUTH TERMINAL, APM & INTERMODAL
SOUTH APM TERMINAL COMPLEX
Initial Phase of Development
10/02/2013
36
37. SOUTH TERMINAL, APM & INTERMODAL
SOUTH APM & INTERMODAL TERMINAL COMPLEX
Second Phase of Development
10/02/2013
37
38. SOUTH TERMINAL, APM & INTERMODAL
SOUTH TERMINAL & INTERMODAL TERMINAL COMPLEX
Third Phase of Development
10/02/2013
38
39. SOUTH TERMINAL, APM & INTERMODAL
SOUTH TERMINAL & INTERMODAL TERMINAL COMPLEX
Fourth Phase of Development
10/02/2013
39
40. SOUTH TERMINAL, APM & INTERMODAL
SOUTH TERMINAL & INTERMODAL TERMINAL COMPLEX
Fifth Phase of Development
10/02/2013
40
41. SOUTH TERMINAL, APM & INTERMODAL
SOUTH TERMINAL & INTERMODAL TERMINAL COMPLEX
Ultimate Build-Out with Terminals C & D
10/02/2013
41
42. SOUTH TERMINAL, APM & INTERMODAL
SOUTH TERMINAL & INTERMODAL TERMINAL COMPLEX
Ultimate Build-Out with Terminals C & D
10/02/2013
42
43. SOUTH TERMINAL, APM & INTERMODAL
SOUTH AIRPORT APM & INTERMODAL TERMINAL COMPLEX
10/02/2013
43
48. MAIN AGREEMENTS
• Rail Line Easement Agreement
• Intermodal Station Premises Agreement
• Rail Maintenance Yard Lease
Agreement
Wednesday, October 2, 2013
49. Rail Line Easement
Agreement
• Rail corridor enters airport at
Narcoossee Road south of SR 528
then parallels Jeff Fuqua
Boulevard.
• Corridor traverses the Runway 17L
runway protection zone (RPZ)
subject to terms of completed FAA
settlement agreement.
• Approximately 38 acres subject to
final design and field survey
• Corridor width varies from
approximately 39 feet to 143 feet.
Rail Line
Easement
Wednesday, October 2, 2013
50. SUMMARY OF RAIL LINE EASEMENT
AGREEMENT
• Rail Line Easement Property: (1) While on grade is 4 ft below
rail base and up to 18 ft above rail base and approximately 50 ft
wide including unusable slivers of property and slope easement
and (2) while on structure (through the Rail Station and on
bridges) is to the base of bridge or viaduct structure up to 18
feet above the rail and a width of approximately 50 ft increasing
up to 145 feet through the Rail Station Building excluding
platforms.
• Term: 99 years beginning on date of recording of Easement.
• “AS-IS”: Easement granted in “AS-IS” condition without warranty
of title and without representations as to physical condition.
Wednesday, October 2, 2013
51. SUMMARY OF RAIL LINE EASEMENT
AGREEMENT
• Engineering Study: Rail Company shall obtain a Rail Corridor
Engineering Study to provide the scope of work to be completed
for the Rail Corridor and the Critical Rail Corridor Improvements.
• Critical Rail Corridor Improvements: Improvements that All
Aboard Florida (“AAF”) will be required to make to the Rail
Corridor for the benefit of the Authority. (e.g., design and
construct a new bridges from Jeff Fuqua Blvd. to Cargo Road
including expanded bridge spans to accommodate both AAF
and future light rail.)
Wednesday, October 2, 2013
52. SUMMARY OF RAIL LINE EASEMENT
AGREEMENT
• Purchase Price: Fair Market Value as required by the FAA
Revenue Use Policy set by appraisal and percentage of prior
Authority investment, subject to set-off by the Critical Rail
Corridor Improvements Credit.
• Critical Rail Corridor Improvements Credit: The Authority will
provide a credit to AAF for portions of the Critical Rail Corridor
Construction Costs, but because the corridor includes space for
two forms of rail, intercity and light rail, the credit percentage will
vary for each Critical Rail Corridor Improvement. Maximum
Credit $15,000,000.
Wednesday, October 2, 2013
53. SUMMARY OF RAIL LINE EASEMENT
AGREEMENT
• Right to Operate and Rail Airport Fee: The Authority shall, upon
recording the Rail Line Easement, grant Rail Company the right
to operate passenger rail service into and out of the Airport.
Rail Airport Fee: Rail Company shall remit a fee of $1.50 per
outbound passenger; however, Fifty Cents ($0.50) of the fee
will be waived until the earlier of air passenger service
beginning at the South Terminal or when train ridership
reaches 1.4 million outbound passengers over a rolling 12
month period.
Adjustment: The fee shall be adjusted by the CPI, at the
Authority’s option, every 5 years.
Wednesday, October 2, 2013
54. SUMMARY OF RAIL LINE EASEMENT
AGREEMENT
•
•
•
Temporary Construction Easement: Authority will grant a Temporary
Construction Easement upon completion of the Survey by Rail Company.
The Temporary Construction Easement will terminate (1) within three years if
no work is commenced, (2) within six years if work is commenced but
substantial completion is not reached and (3) once work within the Corridor
has been completed and accepted by the Authority.
Grant of Rail Line Easement: The Authority will grant the Rail Line Easement
once the Improvements have been substantially completed.
Reservation of Rights: The Authority reserves the right: (1) to cross under or
over the Easement Property, (2) to cross the Easement Property for
maintenance of other Authority facilities, (3) to enter in event of default to
conduct maintenance, (4) to enter in event of emergency and (5) to impact
the slope easement subject to AAF approval.
Wednesday, October 2, 2013
55. SUMMARY OF RAIL LINE EASEMENT
AGREEMENT
•
Limitations: The following limitations shall apply:
Gambling: Rail Company agrees that there is to be neither
gambling nor gambling advertisements on board the trains or in
the OIA Rail Station unless gambling is legal in both Orange
County and Miami/Dade County and the Authority adopts a
policy allowing gambling or gambling promotion at the Airport.
Fueling: There shall be no fueling of locomotives or any other
vehicle on the Easement Property.
Non-Emergency Repairs: There shall be no non-emergency
repairs conducted on the Easement Property.
Display Advertising: There shall be no display advertising on the
Easement Property. Allows for train “wraps” subject to Airport
approval.
Wednesday, October 2, 2013
56. SUMMARY OF RAIL LINE EASEMENT
AGREEMENT
• Maintenance: The Rail Company is responsible for maintenance
of the Rail Line Easement and its improvements therein. The
Authority will become responsible for maintenance of the Critical
Rail Corridor Improvements which are not contained within the
Rail Line Easement Property.
• Future Southern Connection: The Rail Line Easement will grant
no rights to Rail Company relating to rail alignment allowing a
passenger connection southbound out of the Airport. The
Authority agrees to negotiate this in the future.
Wednesday, October 2, 2013
57. Intermodal Station
Premises Lease
• Located adjacent to South Airport
APM Station
• Approximately 35,000 SF of
conditioned space located on level
3 of Intermodal Terminal
• Approximately 83,500 SF of
unconditioned rail platform space
on level 2 of Intermodal Terminal
•
Station Premises
Lease
Approximately 3000 SF of baggage
delivery and make up space on level 1
Enlargement
Wednesday, October 2, 2013
58. SUMMARY OF INTERMODAL STATION
PREMISES AGREEMENT
•
•
•
•
Term: 50 years beginning on the rent commencement date which is later
of (1) commencement of Rail Company’s revenue generating Rail
business or (2) the Authority’s substantial completion of the South Airport
APM Complex.
Rent: Fair Market Value as required by the Federal Aviation
Administration (“FAA”) Revenue Use Policy to be set by utilizing agreed
upon rates and charges model. Initially approximately $2,825,800.
Rent Adjustment: Once every five (5) years the Premises will be
evaluated under the rates and charges model. In no event shall the rent
be reduced. Increase will be limited to 35%.
Improvements: Subject to Authority approval, AAF is responsible for
constructing and installing all improvements, fixtures, furnishings,
signage, trade fixtures, etc. within the Premises for its use.
Wednesday, October 2, 2013
59. SUMMARY OF PREMISES LEASE
AGREEMENT
•
•
Employee and Guest Parking: The Authority agrees to designate an
area of the adjacent parking garage for use by AAF’s guests and
employees at standard rates. The garage will be operated by the
Authority.
Concession Agreement: AAF is permitted to have up to 1,000 SF of
concession space to provide news and gifts and grab and go food and
beverage items to its customers.
Concession Fee: Shall be 15% of gross receipts/rents.
Limitations: Shall not include Theme Retail Merchandise, Tax free
and/or duty-free, game of chance tickets or gambling, no gum or
popcorn, and no tobacco products.
Wednesday, October 2, 2013
60. SUMMARY OF PREMISES LEASE
AGREEMENT
•
•
Obligations of the Authority:
Construct the Rail Station Building: Subject to all conditions precedent
and funding being in place to begin construction.
Rental Cars: The Authority will ensure that rental car counters and
ready return spaces are available at the Rail Station Building.
Obligations of AAF:
Critical Rail Corridor Improvements: Complete the Critical Rail
Corridor Improvements.
Complete tenant build out of premises.
Wednesday, October 2, 2013
61. SUMMARY OF PREMISES LEASE
AGREEMENT
• Limitations: The following limitations shall apply:
Gambling and gambling promotion, fueling, non- emergency repairs
same as Rail Easement Agreement
Display Advertising: The parties shall enter into a display advertising
agreement.
• Authority entitled to 50% of gross receipts from third party advertising within
Premises.
• Authority will control location and size of third party advertising.
Wednesday, October 2, 2013
62. Vehicle Maintenance
Facility Ground Lease
• Located south of City of Orlando
Conserv I Water Treatment Facility
• Approximately 80 acre lease area
• Access to site from Boggy
Creek/Wetherbee Road
intersection
• Site located outside future west
runways’ runway protection zones.
Maintenance
Facility
Wednesday, October 2, 2013
63. SUMMARY OF VEHICLE MAINTENANCE
LEASE AGREEMENT
•
•
•
•
•
Land: Approximately 80 Acres south of City water treatment plant.
Term: 50 years beginning on the rent commencement date.
Rent: 8% of Fair Market Value set by Appraisal in compliance with the
Federal Aviation Administration (“FAA”) Revenue Use Policy.
Approximately $582,400.
Rent Adjustment: Once every five (5) years the Land will be appraised
and adjusted. In no event shall the rent be reduced or increased by
more than 35%. If exceeds 25%, AAF may cancel on 1 year’s notice.
Option to Cancel and Rent Credit: During escrow period AAF may
cancel Vehicle Maintenance Lease if muck removal and backfill
estimated by professional engineer to exceed $5,000,000. Up to $1.5
Million for extraordinary muck removal and backfill.
Wednesday, October 2, 2013
64. SUMMARY OF RAIL MAINTENANCE
YARD LEASE AGREEMENT
•
•
Improvements: AAF is responsible for constructing and installing all
improvements, buildings, track, fixtures, furnishings, signage, trade fixtures,
etc. within the Land for its use.
Approval: All improvements within the Land are subject to review and
approval by the Authority.
Rail Crossings:
Haul Road: Temporary crossing to be constructed by AAF and liability
is AAF, subject to indemnity clause.
Future Authority Crossing: Crossing construction is at Authority
expense and liability is Authority’s subject to statutory sovereign
immunity limitations.
Third Party Crossing: Subject to negotiation of License with AAF.
Wednesday, October 2, 2013
65. PROVISIONS APPLICABLE TO
ALL LEASE AGREEMENTS
•
•
Indemnification: Rail Company shall indemnify the Authority and the City from claims
arising from use of the Rail Line Easement premises, the terminal building premises
and the rail maintenance lease property. Limited indemnity if claim in terminal
buildings, parking garages and APM system outside of AAF control.
Insurance: Rail Company shall maintain insurance as follows
Commercial general liability $10,000,000 increasing to $100,000,000 upon
construction start.
Rail Road Liability Insurance in an amount of $200,000,000 upon operation of the
rail road business.
Workmen’s Compensation and Employer’s Liability in amount of $1,000,000.
Professional Liability insurance ranging from $2,000,000-$5,000,000.
Environmental Liability insurance in amount of $25,000,000 per
claim/$25,000,000 aggregate for three (3) year term.
Builder’s Risk in an amount to cover the cost of improvements.
Terrorism or war risk and allied perils liability in the amount of $20,000,000
property damage/$25 million aggregate.
Authority may cause any insurance required but not purchased to be issued and
Rail Company will be liable for the premium.
Wednesday, October 2, 2013
66. PROVISIONS APPLICABLE TO
ALL LEASE AGREEMENTS
•
Termination Events of Default:
Conduct by Rail Company of any business not authorized by
agreement with the Authority.
Rail Company’s failure to make a payment required which is not
remedied within 180 days of demand.
Rail Company’s repeated failure (6 times in 12 months) to make a
required payment.
Rail Company abandons the Easement by ceasing to provide service
for 180 days provided however if Rail Company or its assigned
successor, is reorganizing and service ceases for 365 days.
Any of Rail Company’s trains fail to provide scheduled passenger rail
service at to OIA.
Rail Company violates gambling restriction.
Filing of a bankruptcy proceeding by or against Rail Company if it has
defaulted on the Agreement within 180 days preceding the filing.
Wednesday, October 2, 2013
67. PROVISIONS APPLICABLE TO
ALL LEASE AGREEMENTS
• Non-Termination events of Default:
Rail Company’s failure to cure a default in a timely fashion.
Placement of a construction lien upon Easement property.
Rail Company’s failure to provide a required financial report.
Rail Company’s failure to pay fees when due.
Rail Company’s failure to maintain insurance coverage.
Appointment of a receiver of Rail Company’s assets.
The divesture of Rail Company by operation of law.
Wednesday, October 2, 2013
68. PROVISIONS APPLICABLE TO
ALL LEASE AGREEMENTS
•
•
Authority Remedies: Any remedy provided by law or in equity including but
not limited to:
Accounting for monies owed.
Injunction.
Appointment of receiver.
Suing for amounts due, including attorney’s fees.
Specific Performance.
Authority events of default:
Authority fails to perform under the Easement Agreement for at least 30
days after receiving notice
Airport is permanently closed as a multimodal transportation facility
Rail Company is unable to use Airport for at least 180 days due to
government order or court injunction
US government assumes control of the Airport for at least 60 days,
restricting Rail Company from conducting operations
Wednesday, October 2, 2013
69. PROVISIONS APPLICABLE TO
ALL LEASE AGREEMENTS
• Bonds: Rail Company shall obtain payment and performance
bonds for any improvements greater than $200,000 equal to the
amount of the construction contract awarded by the Rail
Company, naming the Authority as an obligee.
Payment Bonds equal to the full amount of the construction
contract awarded.
Performance Bonds to guarantee the performance of
necessary construction and completion of improvements.
Demolition Bond shall guarantee the removal of the
improvements upon termination of the Easement. It shall be
renewed for ten (10) years.
Alternate Form of Security may be provided by Rail
Company in the form of cash, , money order, certified check
or irrevocable letter of credit.
Wednesday, October 2, 2013
70. PROVISIONS APPLICABLE TO
ALL LEASE AGREEMENTS
• Assignment: Rail Company may not sublet or assign without prior
consent of Authority but may transfer an equity interest under
certain conditions without the Authority’s consent.
• Improvements: Rail Company will own all improvements
constructed on the Rail Company Premises. Upon termination of
the Easement Agreement the Authority will have the option to
require the removal of all improvement or accept title to same.
• Environmental: Rail Company is responsible for any releases of
hazardous substances, contamination of soil or groundwater, or
toxic materials buried on the Rail Company Premises by the Rail
Company.
• Recognized Mortgagee: Rail Company may execute a mortgage
on its interest in the Rail Line Easement, Premises Lease and Rail
Maintenance Lease interests.
Wednesday, October 2, 2013
71. ESCROW AGREEMENT
•
Escrow Release Conditions: The Rail Line Easement Agreement, Premises
Lease and Vehicle Maintenance Lease will be held in Escrow until the
following have been met:
Finalized Legal Descriptions are agreed to by the parties.
All escrow documents are complete.
Condition of title is determined acceptable to AAF.
The Authority adopts a funding plan for South Airport APM Complex
and funding receives all governmental approvals.
The FAA’s delivery of the letter and deed of release.
Funding from the State of Florida for design, engineering, permitting
and construction is in place.
AAF obtains its Environmental Impact Study.
AAF receives its St. John’s River Water Management District, FDOT,
FRA and other permits required for the project.
The Authority reviews and finds AAF financials acceptable.
The parties agree on the master construction schedule.
Wednesday, October 2, 2013
72. RECOMMENDED ACTION
It is respectfully requested that the Aviation Authority Board
resolve to: 1) approve the Rail Line Easement Agreement,
Premises Lease and Use Agreement and the Vehicle
Maintenance Facility Ground Lease Agreement (the
“Agreements”); 2) request concurrence by the Orlando City
Council of a lease term in excess of 10 years and approval of a
grant of an easement interest in real property; 3) request FAA
provide a deed of release for the Rail Line Easement; and 4)
Authorize an Aviation Authority officer or the Executive Director to
execute the Agreements, and all documents necessary and
reasonable to carry out the Agreements following satisfactory
review by legal counsel.
Wednesday, October 2, 2013
